A: In community property states like California, when one spouse passes away, the entire value of community property assets—like a home or investments—receives a step-up in basis to the fair market value at that time. This means:
– No capital gains tax if the surviving spouse sells right away
– Lower taxes if sold later, since only future gains are taxed
– Major savings for families passing down assets
Without proper estate planning, you could miss out on this tax break. Let’s make sure your legacy is protected!
